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Everest Q4 Earnings Miss, Revenues Top Estimates, Premiums Down Y/Y
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Key Takeaways
Q4 operating income hit $13.26 per share, a sharp recovery from the $18.39 loss seen in the prior year.
Net investment income rose 18.8% to $562M, significantly beating analyst expectations.
Gross premiums fell 8.6% as EG aggressively cut casualty lines to focus on higher-margin specialty risks.
Everest Group, Ltd. (EG - Free Report) reported a fourth-quarter 2025 operating income of $13.26 per share, missing the Zacks Consensus Estimate by 0.8%. The bottom line reversed the year-ago loss of $18.39.
Everest Group benefited from strong performing Reinsurance segment, along with solid core fixed-income investment returns. These positives were partially offset by weak performance in the insurance businesses, higher expenses and underwriting losses.
Everest Group, Ltd. Price, Consensus and EPS Surprise
Total operating revenues of nearly $4.4 billion declined 4.6% year over year, reflecting lower premiums. The top line beat the Zacks Consensus Estimate by 2.7%.
Gross written premiums fell 8.6% year over year to $4.3 billion, as strong double-digit growth in specialty lines was offset by targeted reductions in certain casualty lines. Our estimate was $4.8 billion.
Net investment income rose 18.8% year over year to $562 million, driven by a larger asset base and strong alternative investment returns. The figure exceeded both our estimate of $330.6 million and the Zacks Consensus Estimate of $456.4 million.
Total claims and expenses declined 28.1% to $3.9 billion, primarily due to lower incurred losses and loss adjustment expenses, commissions, brokerage, taxes and fees. Our estimate was $3.5 billion.
Underwriting income totaled $60 million due to a loss at the Insurance segment, but compared favourably with an underwriting loss of $1.4 billion in the year-ago quarter.
Pre-tax catastrophe losses, net of recoveries and reinstatement premiums, were $216 million, narrower than $312 million a year ago.
The combined ratio improved 20 basis points year over year to 98.4. The Zacks Consensus Estimate was 93.3, while our estimate was 94.2.
Q4 Segmental Update of Everest Group
The Reinsurance segment generated gross written premiums of $3.2 billion, down 3.6% year over year and below our estimate of $3.3 billion. The decline reflected lower volumes in Casualty Pro-Rata and Casualty XOL, which offset growth in Property Catastrophe XOL and Financial Lines.
The segment’s combined ratio deteriorated to 91.2 from 90.4 a year ago, coming in weaker than the Zacks Consensus Estimate of 90 and our estimate of 84.4.
The Insurance segment posted gross written premiums of $1.1 billion, down 19.7% year over year. Higher premiums in Accident and Health and Other Specialty were offset by declines in Property / Short Tail, Specialty Casualty, Professional Liability and Workers' Compensation.
The combined ratio improved 12,220 basis points year over year to 117. Our estimate was 86.5, while the Zacks Consensus Estimate was 102.
EG’s Financial Update
Everest Group exited the fourth quarter of 2025 with total investments and cash of $45.4 billion, up 9.4% from the 2024-end level.
Shareholders’ equity rose 11.4% year over year to $15.5 billion.
Book value per share increased 10.8% year over year to $379.7 as of Dec. 31, 2025.
Annualized net income return on equity improved 340 basis points year over year to 12.4%.
Cash flow from operations totaled $3.1 billion for the year, down 38.1% year over year.
Capital Deployment of EG
EG paid common share dividends of $80 million, or $2 per share, during the reported quarter. It repurchased $797 million worth of shares in 2025.
EG’s Full-Year Highlights
Full-year 2025 operating income per share surged 49.3% year over year to $44.54, beating our estimate by 2.9%.
Total revenues rose 1.24% year over year to $17.5 billion, roughly in line with the Zacks Consensus Estimate.
Gross written premiums fell 2.9% year over year to $17.7 billion, lower than our estimate of $18.2 billion.
The combined ratio improved 370 basis points year over year to 98.6. The Zacks Consensus Estimate was 97.3, while our estimate was 95.
AXIS Capital Holdings Limited (AXS - Free Report) reported fourth-quarter 2025 operating income of $3.25 per share, which outpaced the Zacks Consensus Estimate by 9.4% and rose 9.4% year over year.
Total operating revenues of $1.7 billion beat the Zacks Consensus Estimate by 5.2%. The top line rose nearly 9% year over year on higher premiums earned. Net premiums written rose 13% to $1.4 billion, with an increase of 14% in the Insurance segment, and growth of 5% in the Reinsurance segment.
Chubb Limited (CB - Free Report) reported fourth-quarter 2025 core operating income of $7.52 per share, which beat the Zacks Consensus Estimate by 13.9%. The bottom line improved 24.9% year over year.
Total operating revenues also improved 7.4% year over year to $15.3 billion. The top line beat the Zacks Consensus Estimate by 1.7%. Chubb’s strong performance was driven by solid underwriting profit, robust premium growth and record investment income.
American Financial Group, Inc. (AFG - Free Report) reported fourth-quarter 2025 net operating earnings per share of $3.65, which beat the Zacks Consensus Estimate by 14.8%. The bottom line increased 17% year over year on underwriting income.
Total revenues of $2 billion decreased 2.7% year over year. The decline was due to lower net investment income. The top line also missed the Zacks Consensus Estimate by 1.4%.AFG’s robust fourth-quarter earnings were driven by strong underwriting profit, led primarily by the property and transportation segment.
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Everest Q4 Earnings Miss, Revenues Top Estimates, Premiums Down Y/Y
Key Takeaways
Everest Group, Ltd. (EG - Free Report) reported a fourth-quarter 2025 operating income of $13.26 per share, missing the Zacks Consensus Estimate by 0.8%. The bottom line reversed the year-ago loss of $18.39.
Everest Group benefited from strong performing Reinsurance segment, along with solid core fixed-income investment returns. These positives were partially offset by weak performance in the insurance businesses, higher expenses and underwriting losses.
Everest Group, Ltd. Price, Consensus and EPS Surprise
Everest Group, Ltd. price-consensus-eps-surprise-chart | Everest Group, Ltd. Quote
EG’s Q4 Operational Update
Total operating revenues of nearly $4.4 billion declined 4.6% year over year, reflecting lower premiums. The top line beat the Zacks Consensus Estimate by 2.7%.
Gross written premiums fell 8.6% year over year to $4.3 billion, as strong double-digit growth in specialty lines was offset by targeted reductions in certain casualty lines. Our estimate was $4.8 billion.
Net investment income rose 18.8% year over year to $562 million, driven by a larger asset base and strong alternative investment returns. The figure exceeded both our estimate of $330.6 million and the Zacks Consensus Estimate of $456.4 million.
Total claims and expenses declined 28.1% to $3.9 billion, primarily due to lower incurred losses and loss adjustment expenses, commissions, brokerage, taxes and fees. Our estimate was $3.5 billion.
Underwriting income totaled $60 million due to a loss at the Insurance segment, but compared favourably with an underwriting loss of $1.4 billion in the year-ago quarter.
Pre-tax catastrophe losses, net of recoveries and reinstatement premiums, were $216 million, narrower than $312 million a year ago.
The combined ratio improved 20 basis points year over year to 98.4. The Zacks Consensus Estimate was 93.3, while our estimate was 94.2.
Q4 Segmental Update of Everest Group
The Reinsurance segment generated gross written premiums of $3.2 billion, down 3.6% year over year and below our estimate of $3.3 billion. The decline reflected lower volumes in Casualty Pro-Rata and Casualty XOL, which offset growth in Property Catastrophe XOL and Financial Lines.
The segment’s combined ratio deteriorated to 91.2 from 90.4 a year ago, coming in weaker than the Zacks Consensus Estimate of 90 and our estimate of 84.4.
The Insurance segment posted gross written premiums of $1.1 billion, down 19.7% year over year. Higher premiums in Accident and Health and Other Specialty were offset by declines in Property / Short Tail, Specialty Casualty, Professional Liability and Workers' Compensation.
The combined ratio improved 12,220 basis points year over year to 117. Our estimate was 86.5, while the Zacks Consensus Estimate was 102.
EG’s Financial Update
Everest Group exited the fourth quarter of 2025 with total investments and cash of $45.4 billion, up 9.4% from the 2024-end level.
Shareholders’ equity rose 11.4% year over year to $15.5 billion.
Book value per share increased 10.8% year over year to $379.7 as of Dec. 31, 2025.
Annualized net income return on equity improved 340 basis points year over year to 12.4%.
Cash flow from operations totaled $3.1 billion for the year, down 38.1% year over year.
Capital Deployment of EG
EG paid common share dividends of $80 million, or $2 per share, during the reported quarter. It repurchased $797 million worth of shares in 2025.
EG’s Full-Year Highlights
Full-year 2025 operating income per share surged 49.3% year over year to $44.54, beating our estimate by 2.9%.
Total revenues rose 1.24% year over year to $17.5 billion, roughly in line with the Zacks Consensus Estimate.
Gross written premiums fell 2.9% year over year to $17.7 billion, lower than our estimate of $18.2 billion.
The combined ratio improved 370 basis points year over year to 98.6. The Zacks Consensus Estimate was 97.3, while our estimate was 95.
EG’s Zacks Rank
Everest Group currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
AXIS Capital Holdings Limited (AXS - Free Report) reported fourth-quarter 2025 operating income of $3.25 per share, which outpaced the Zacks Consensus Estimate by 9.4% and rose 9.4% year over year.
Total operating revenues of $1.7 billion beat the Zacks Consensus Estimate by 5.2%. The top line rose nearly 9% year over year on higher premiums earned. Net premiums written rose 13% to $1.4 billion, with an increase of 14% in the Insurance segment, and growth of 5% in the Reinsurance segment.
Chubb Limited (CB - Free Report) reported fourth-quarter 2025 core operating income of $7.52 per share, which beat the Zacks Consensus Estimate by 13.9%. The bottom line improved 24.9% year over year.
Total operating revenues also improved 7.4% year over year to $15.3 billion. The top line beat the Zacks Consensus Estimate by 1.7%. Chubb’s strong performance was driven by solid underwriting profit, robust premium growth and record investment income.
American Financial Group, Inc. (AFG - Free Report) reported fourth-quarter 2025 net operating earnings per share of $3.65, which beat the Zacks Consensus Estimate by 14.8%. The bottom line increased 17% year over year on underwriting income.
Total revenues of $2 billion decreased 2.7% year over year. The decline was due to lower net investment income. The top line also missed the Zacks Consensus Estimate by 1.4%.AFG’s robust fourth-quarter earnings were driven by strong underwriting profit, led primarily by the property and transportation segment.